31 March 1999 GST/HST Ruling HQR0001672 - Frozen Ring of Shrimps

XXXXX

Thank you for your letter of February 24, 1999 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies of frozen ring of shrimps.

Statement of Facts

1. At the time of our meeting of March 12, 1999, you presented a prototype consisting of cooked and peeled shrimp frozen together, rather than individually quick frozen, in a circle in a poly bag.

2. There is no servingware as part of the product.

At the time of our meeting no brand name was found for this prototype. In order to distinguish it from the traditional shrimp ring, we will call the prototype "frozen ring of shrimps".

Ruling Requested

You would like to know if the supply of a frozen ring of shrimps, as presented, is subject to the GST/HST.

Ruling Given

The supply of a frozen ring of shrimps described above is zero-rated pursuant to section 1 of Part III of Schedule VI to the Excise Tax Act.

On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%. If you supply goods that are delivered or made available in a participating province, services to be performed in a participating province or intangible personal property that may be used in a participating province to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

For your convenience, find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-8812.

Yours truly,

Isabelle Breault
Goods Unit
General operations and border issues Division
GST/HST Rulings and Interpretations Directorate